Nutanix(NTNX) - 2025 Q1 - Quarterly Results

Nutanix First Quarter Fiscal 2025 Financial Results Financial Highlights Nutanix reported strong first-quarter fiscal 2025 results, outperforming all guided metrics with 18% ARR growth to $1.97 billion and $151.9 million in free cash flow - The company delivered outperformance across all guided metrics for the first quarter, demonstrating a good balance of top and bottom-line performance[3] Q1 Fiscal 2025 Key Financial Metrics (YoY) | Metric | Q1 FY'25 | Q1 FY'24 | Y/Y Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $1.97 billion | $1.66 billion | 18% | | Revenue | $591.0 million | $511.1 million | 16% | | GAAP Gross Margin | 86.0% | 84.0% | 200 bps | | Non-GAAP Gross Margin | 87.5% | 85.9% | 160 bps | | GAAP Operating Income (Loss) | $27.3 million | $(5.7) million | $33.0 million | | Non-GAAP Operating Income | $118.2 million | $79.5 million | $38.7 million | | GAAP Operating Margin | 4.6% | (1.1)% | 570 bps | | Non-GAAP Operating Margin | 20.0% | 15.6% | 440 bps | | Free Cash Flow | $151.9 million | $132.5 million | $19.4 million | Recent Company Highlights Nutanix strengthened its market position through strategic partnerships, product innovation, and industry recognition for its hybrid cloud vision - Expanded strategic collaboration with Amazon Web Services (AWS) to offer customers access to AWS services and promotional credits for migrations to NC2 on AWS[5] - Recognized as a Leader in the 2024 Gartner® Magic Quadrant™ for Distributed Hybrid Infrastructure, attributed to its vision for integrating edge, private, and public clouds[5][6] - Extended its AI infrastructure platform with a new cloud-native offering, Nutanix Enterprise AI (NAI), deployable on any Kubernetes platform including AWS EKS, Azure AKS, and Google GKE[6] Business Outlook Nutanix projects positive financial performance for Q2 and full fiscal year 2025, with expected revenue growth and strong free cash flow Second Quarter Fiscal 2025 Outlook | Metric | Outlook | | :--- | :--- | | Revenue | $635 - $645 million | | Non-GAAP Operating Margin | 20% to 21% | | Weighted Average Shares Outstanding (Diluted) | Approx. 289 million | Fiscal 2025 Outlook | Metric | Outlook | | :--- | :--- | | Revenue | $2.435 - $2.465 billion | | Non-GAAP Operating Margin | 16% to 17% | | Free Cash Flow | $560 - $610 million | Consolidated Financial Statements The consolidated financial statements detail Nutanix's financial position, showing asset growth, liability structure, and a shift to net income Condensed Consolidated Balance Sheets As of October 31, 2024, Nutanix reported total assets of $2.18 billion and total liabilities of $2.87 billion, resulting in a stockholders' deficit of $685.3 million Balance Sheet Summary (in millions) | Account | Oct 31, 2024 | July 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,523.5 | $1,481.3 | | Cash and cash equivalents | $716.6 | $655.3 | | Total Assets | $2,181.4 | $2,143.9 | | Total Current Liabilities | $1,220.6 | $1,244.3 | | Deferred revenue—current | $968.6 | $954.5 | | Total Liabilities | $2,866.6 | $2,872.1 | | Total stockholders' deficit | $(685.3) | $(728.1) | Condensed Consolidated Statements of Operations For Q1 FY2025, Nutanix reported total revenue of $591.0 million and achieved a net income of $29.9 million, a significant improvement from a net loss in the prior year Statement of Operations Summary (in millions) | Account | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Total revenue | $591.0 | $511.1 | | Gross profit | $508.3 | $429.1 | | Total operating expenses | $481.0 | $434.8 | | (Loss) income from operations | $27.3 | $(5.7) | | Net (loss) income | $29.9 | $(15.9) | | Net (loss) income per share, diluted | $0.10 | $(0.07) | Condensed Consolidated Statements of Cash Flows In Q1 FY2025, Nutanix generated $161.8 million in net cash from operating activities, ending the quarter with $716.6 million in cash and cash equivalents Cash Flow Summary (in millions) | Activity | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Net cash provided by operating activities | $161.8 | $145.5 | | Net cash used in investing activities | $(28.2) | $(42.2) | | Net cash used in financing activities | $(72.2) | $(4.4) | | Net increase in cash | $61.3 | $98.9 | | Cash and cash equivalents—end of period | $716.6 | $612.5 | Key Performance Metrics and Non-GAAP Reconciliations This section details key financial metrics, including subscription revenue, ARR, and reconciliations of GAAP to non-GAAP profit and free cash flow measures Revenue and Billings Subscription revenue accounted for approximately 95% of total revenue at $560.7 million, with total billings reaching $591.4 million for Q1 FY2025 Disaggregation of Revenue (in millions) | Revenue Type | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Subscription revenue | $560.7 | $479.5 | | Professional services revenue | $27.3 | $22.8 | | Other non-subscription product revenue | $3.0 | $8.7 | | Total revenue | $591.0 | $511.1 | Annual Recurring Revenue (ARR) As of October 31, 2024, Nutanix's Annual Recurring Revenue (ARR) reached $1.97 billion, reflecting the annualized value of active subscription contracts - Annual Recurring Revenue (ARR) was $1.97 billion for the three months ended October 31, 2024[37] Reconciliation of GAAP to Non-GAAP Profit Measures Nutanix's non-GAAP results show stronger profitability, with non-GAAP operating income of $118.2 million and net income of $121.8 million for Q1 FY2025 GAAP vs. Non-GAAP Profit Measures (Q1 FY'25, in millions) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Gross Profit | $508.3 | $517.1 | | Gross Margin | 86.0% | 87.5% | | Income from Operations | $27.3 | $118.2 | | Operating Margin | 4.6% | 20.0% | | Net Income | $29.9 | $121.8 | | Net Income per Share, diluted | $0.10 | $0.42 | Reconciliation of Free Cash Flow For Q1 FY2025, Nutanix generated $151.9 million in free cash flow, calculated from $161.8 million in operating cash flow less capital expenditures Free Cash Flow Reconciliation (in millions) | Metric | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Net cash provided by operating activities | $161.8 | $145.5 | | Purchases of property and equipment | $(9.8) | $(13.0) | | Free cash flow | $151.9 | $132.5 |